A group of auto makers will undertake a joint venture to create a low cost car.
This group includes Bajaj Auto Ltd, a major Indian automobile manufacturer, Renault, a French vehicle manufacturer, and its Nissan Motor Co affiliate.
The car codenamed ULC will be worth of $2500 and will be launched for sale in India in early 2011.
The know-how will be made in a 400,000 units initial capacity plant in Chakan near Pune on land provided by Bajaj.
Renault-Nissan will hold intellectual property rights for the car's technical design and mechanicals, but it’s still unclear what branding will be given to the car.